Cryptocurrencies have exploded, and Bitcoin is the most popular of them all. But what is the cheapest way to invest in Bitcoin and get in the game? And, should you even attempt it?
First off, Bitcoin and other cryptocurrencies are more than Digital Age trends. These virtual currencies are traded online every day, in every part of the world. And since their creation in 2009, Bitcoin has exploded in value; today, the price of a single Bitcoin is equal to $36,000+ USD.
So if you have some money to spend, and are looking to dip into the world of cryptocurrency, now might be the best time to try it. But take heed: Bitcoin is still in an experimental phase, and it’s not regulated by any government or international bank. That means, you’ll want to be very careful with how much money you invest in this risky venture.
Still, if you’re confident in your financial acumen, there are a host of ways you can start buying and selling cryptocurrencies. Keep reading to learn the cheapest and easiest ways to invest.
Coinbase is a popular choice for crypto-trading. This online market is accessible in the United States, Canada, Australia, and several European countries. It also allows you to link your bank account for ease of transaction. In addition to Bitcoin, it avails users to other cryptocurrencies like Etherium and Litecoin.
Coinbase charges about 0.5% on every investment, plus a fee which varies by region. In the United States, transaction fees are typically about 1.49% of your purchase.
Based in Tokyo, Binance is the world’s largest cryptocurrency exchange by volume. But unlike Coinbase, it is exclusively a market for trading cryptocurrencies. You cannot link a bank account, as you will not be able to purchase Bitcoin with your US dollar. Still, if you already own Bitcoin or one of its peers, Binance allows you to trade with other users for a 0.1% fee.
Gemini is a streamlined app that helps you keep track of your trades, ensures security in all transactions and helps you learn more about crypto investments. The American-based exchange features Bitcoin, Ether, Litcoin, and Zcash. Fees, meanwhile, are similar to Coinbase, ranging from $0.99 on small trades to 1.49% of your entire order, depending on the volume of your purchase.
The Israeli-based Coinmama is one of the more expensive crypto exchanges, though it has some attractive features. Coinmama charges a fee of 5.9% on every Bitcoin purchase and slaps another 5% fee for using a credit or debit card. Additionally, Coinmama only allows you to buy Bitcoin, which means you’ll have to use another exchange to sell it later on. Still, it is one of the most secure places to trade Bitcoin, since it doesn’t require you to register a credit card, nor does it store card information on its site.
There’s been a lot of controversy surrounding Robinhood recently, but here’s what you need to know it from a cryptocurrency perspective. This stock trading app lets you buy and sell shares on the Stock Exchange directly from your phone, but it also allows you to do the same with Bitcoin! Like all trades on the app, Robinhood does not charge a commission fee on Bitcoin exchanges.